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QUESTION 9 ADS Luxury Ltd is required to prepare a Cash Flow Statement for the year ended 31 December 2020. Net profit for the financial
QUESTION 9 ADS Luxury Ltd is required to prepare a Cash Flow Statement for the year ended 31 December 2020. Net profit for the financial year was $217,000. 31 December 2019 31 December 2020 Cash $105,000 $359,000 Accounts Receivable $29,000 $32,000 Inventory $142,500 $135,000 Prepaid Rent $81.000 $70,000 Delivery Van $115,000 $115,000 Accumulated Depreciation - Delivery Van $13,000 $26,000 Accounts Payable $84,000 $97,500 Interest Payable $23,000 $18,000 Long-term Loan $150,000 $150,000 Ordinary Share Capital $62,000 $62,000 Required: Using the balance sheet information and additional notes provided above, prepare the operating activities section of the Cash Flow Statement using the indirect method. (6 marks) Note: Only the operating activities section is required, not the entire cash flow statement
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